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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Valeo (VLEEY). VLEEY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.10 right now. For comparison, its industry sports an average P/E of 12.69. VLEEY's Forward P/E has been as high as 11.09 and as low as 4.85, with a median of 6.37, all within the past year.
Investors should also recognize that VLEEY has a P/B ratio of 0.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.70. VLEEY's P/B has been as high as 0.81 and as low as 0.49, with a median of 0.64, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Valeo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VLEEY feels like a great value stock at the moment.
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Valeo S.A. (VLEEY) : Free Stock Analysis Report